The facade is crumbling, it is raining through the roof, and the heating costs of last winter have brought tears to your eyes? Clear case: Your house has its best days behind. No reason to order the wrecking ball. Renovation is often worthwhile to bring the building back into shape. You don’t have to pay for it out of pocket. There are three types of credit to choose from:
In the following we present all three variants with their advantages and disadvantages and show which loan suits real estate owners best.
Because the granting of a renovation loan is linked to your existence as a property owner, you receive cheaper interest than with a normal, free installment loan. The following points speak for the restructuring loan:
By the way: It doesn’t matter whether the loan you are applying for is called a renovation loan or a renovation loan. Each bank uses its own name for this. It is one and the same loan product, namely an earmarked installment loan, which is only intended for property owners.
What should be noted: Some banks define the requirements for renovation loans or renovation loans somewhat more strictly. It may be the case that you not only have to provide a land register extract but also an action plan or cost estimates before approval. In some cases, the institutes want to see invoices afterwards with which you have to prove the use of the money. In return for the stricter rules, you often get even cheaper interest. If you prefer your independence, choose banks that set looser rules for restructuring loans when choosing a bank.
As a property owner, you already had construction finance to buy your own home years ago. Now you want to renovate or renovate your house. So the idea is obvious to simply take out another building loan. After all, interest rates for this are currently unbeatably low.
However, the barriers to entry are all the higher:
If, despite everything, construction financing is an option for your project, you still have to weigh it up: a building loan is cheaper in terms of interest than a renovation loan, but it is also more complex to process. As with the purchase, a land register entry must be made via the notary, which causes additional costs. Our land register calculator shows you what to expect. If you look at these expenses, a special-purpose installment loan is often the better, because uncomplicated, alternative for property owners.
Last but not least, you also have a free, non-earmarked installment loan. This is the most straightforward option when it comes to application procedures. You do not have to submit a land register statement, and ultimately the bank does not care what you use the money for. As a consequence, you also have to pay the highest interest for a free installment loan compared to a home loan and a dedicated installment loan. From a purely financial point of view, a dedicated installment loan is therefore more worthwhile for property owners.
Extensive renovation or renovation requires good planning: from the commissioning of an appraiser to the organization of craft businesses and service providers to the application for the appropriate loan. Our installment loan specialists are at your side: in a personal discussion, they clarify which measures you have in mind and find banks that have exactly the right loan for them. The consultants will also accompany you through the entire application process.